State which of these selected enhancing qualitative

characteristics and accounting

State which of these selected enhancing qualitative characteristics and accounting
conventions—comparability, verifiability, timeliness, cost constraint, consistency, full disclosure,
materiality, or conservatism—is being followed in each case that follows.1. Management
provides detailed information about the company’s long-term debt in the notes to the financial
statements.2. A company does not account separately for discounts received for prompt
payment of accounts payable because few of these transactions occur and the total amount of
the discounts is small.3. Management eliminates a weekly report on property, plant, and
equipment acquisitions and disposals because no one finds it useful.4. A company follows the
policy of recognizing a loss on inventory when the market value of an item falls below its cost
but does nothing if the market value rises.5. When several accounting methods are acceptable,
management chooses a single method and follows that method from year to year.6. The
internal audit department comes up with similar estimates to management’s determination of
fair value of investments.7. The company makes every effort to complete its financial
statements within one week after the end of the accounting period.View Solution:
State which of these selected enhancing qualitative characteristics and accounting
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